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Investing.com -- Shares of Payoneer Global Inc. (NASDAQ: PAYO) fell 13% after the company reported fourth-quarter earnings that fell short of Wall Street expectations. The financial technology firm, known for enabling global commerce for small and medium-sized businesses, disclosed a Q4 EPS of $0.05, which was $0.01 below the analyst estimate of $0.06. Moreover, the revenue for the quarter was reported at $224.3 million, missing the consensus estimate of $242.24 million.
The company’s guidance for fiscal year 2025 suggests revenues of $1.04-1.05 billion, aligning with the consensus of $1.04 billion. Despite the shortfall in quarterly revenue, Payoneer achieved an 18% annual revenue growth and reported record profitability for the year. The guidance for the coming year reflects the company’s confidence in maintaining strong performance and capitalizing on business momentum.
In the fourth quarter, Payoneer saw a 17% increase in revenue compared to the same quarter in the previous year, with a total revenue of $977.7 million for the year marking an 18% growth. However, net income in the fourth quarter dropped by 33% year-over-year (YoY) to $18.2 million. Despite this, the full-year net income grew by 30% to $121.2 million.
Operational metrics for the year were positive, with total volume growing 21% YoY to $80 billion, and active Ideal Customer Profiles (ICPs) increasing by 8%. The company also noted an 18% YoY growth in Average Revenue Per User (ARPU), attributing it to business mix improvements and higher adoption of high-value products, particularly their card product.
Payoneer’s CEO, John Caplan, emphasized the company’s achievements in 2024, including new records for annual volume, revenue, and profitability. He outlined the company’s focus for 2025, which includes expanding regulatory moat, modernizing technology infrastructure, and enhancing the financial stack to support continued growth and profitability.
The company also highlighted strategic moves such as the acquisition of Skuad, a global workforce and payroll management company, and the anticipated completion of a China-based payment service provider acquisition, pending regulatory approvals.
Despite the optimistic outlook and strategic initiatives, the immediate market reaction to the Q4 revenue miss has put downward pressure on Payoneer’s stock. Investors seem to be weighing the quarterly performance more heavily than the forward-looking statements and achievements of the past year.
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